Search found 71 matches

by hushpuppy
Tue May 23, 2017 9:51 am
Forum: Personal Finance (Not Investing)
Topic: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization
Replies: 30
Views: 1603

Re: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization

^^^ I would agree that Vanguard is "problematic" when dealing with conversions. Long story short - when doing a Roth conversion, put the funds directly into a Roth account - not the federal settlement fund holding area. I had previously used that same federal settlement account for a 401(...
by hushpuppy
Mon May 22, 2017 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization
Replies: 30
Views: 1603

Re: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization

Celia wrote: I think I understand what you are saying now. I have upgraded the warning in the wiki (after the 5 example conversions) to say: After doing a Roth conversion and there is still a chance of recharacterizing it, you should not move the Roth account to a new custodian or another Roth, sinc...
by hushpuppy
Mon May 22, 2017 9:01 am
Forum: Personal Finance (Not Investing)
Topic: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization
Replies: 30
Views: 1603

Re: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization

Celia wrote: Although I have communicated with a titled Client Manager, Vanguard Flagship Services, about this issue, it might take quite some time before Vanguard Representatives become likely to warn customers about the need for unique Roth account numbers. <--Of course, every account has a unique...
by hushpuppy
Sun May 21, 2017 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization
Replies: 30
Views: 1603

Re: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization

LadyGeek wrote: Perhaps we could phrase something like: If you are contemplating a recharacterization strategy involving multiple Roth and/or traditional IRAs, Vanguard's brokerage service platform may be unable to execute this strategy in a tax-efficient manner. See (this post). Based on Alan S. po...
by hushpuppy
Sun May 21, 2017 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization
Replies: 30
Views: 1603

Re: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization

LadyGeek wrote: This forum follows the man (Jack Bogle), not the company. As long as the statements are accurate and can be verified, it can go in the wiki. Well, I understand bogleheads are or can be associated with any (or no) custodian company, but I personally don't see where we go from here in ...
by hushpuppy
Sun May 21, 2017 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization
Replies: 30
Views: 1603

Re: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization

Alan S. wrote: I have no idea if the new platform composed of a single brokerage account has solved ALL of these issues, but the number of these complaints has dropped considerably as the new platform has been phased in because transfers due solely to the type of investment location is no longer nec...
by hushpuppy
Sun May 21, 2017 11:16 am
Forum: Personal Finance (Not Investing)
Topic: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization
Replies: 30
Views: 1603

Re: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization

Cilia wrote: I am still on the old platform, so am not sure if I understand the potential problem. Don't your investments on the new platform show each holding with partly the account number and partly the fund number as it was on the old platform? When you open a statement for "your account&qu...
by hushpuppy
Sat May 20, 2017 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Re-characterization of Roth contribution "opportunity" issue
Replies: 21
Views: 1346

Re: Re-characterization of Roth contribution "opportunity" issue

Celia - Alan S., Chip, Michael Kitces and many others agree with what you have said. Thank you for working to improve the Wiki and to include a warning about the pro-rata Roth recharacterization issue. You obviously do care about the effects on the unsuspecting. My apologies for questioning your res...
by hushpuppy
Sat May 20, 2017 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization
Replies: 30
Views: 1603

Re: [Wiki] - Pro-rata rule impact on Roth IRA recharacterization

Celia wrote in the Wiki: The primary recommendation when you convert is to always convert into a new (empty) Roth. If you are converting multiple holdings (funds, stocks, bonds), put each one into a new, separate, empty Roth. This will allow you to specify what you want returned to the traditional I...
by hushpuppy
Sat May 20, 2017 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Re-characterization of Roth contribution "opportunity" issue
Replies: 21
Views: 1346

Re: Re-characterization of Roth contribution "opportunity" issue

Chip wrote: In this post you mentioned Treasury Reg 1.408A-5, Q&A-2(c)(4). That same regulation has the paragraph that celia was referring to [1.408A-5(c)(2)(ii)]. In computing the adjusted closing balance of the conversion, it says: (ii) The term adjusted closing balance means the fair market v...
by hushpuppy
Sat May 20, 2017 10:16 am
Forum: Local Chapters and Bogleheads Community
Topic: Suggestions for the Wiki
Replies: 367
Views: 183507

Re: Suggestions for the Wiki

Due to the situation of pro-rating across all non-uniquely numbered Roth accounts, when re-characterizing, I suggest insertion of a warning about ensuring each conversion is placed in a new uniquely numbered Roth account. From Michael Kitces article: Splitting A Roth Conversion Into Multiple Account...
by hushpuppy
Sat May 20, 2017 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Re-characterization of Roth contribution "opportunity" issue
Replies: 21
Views: 1346

Re: Re-characterization of Roth contribution "opportunity" issue

Chip wrote: hushpuppy wrote: Celia, as far as I can see the required 1099s would not prevent this transfer of custodian idea from working. The entire amount of the money market Roth could be re-characterized. I'm sure celia will be along shortly to show you in detail why what you suggest won't work ...
by hushpuppy
Sat May 20, 2017 7:38 am
Forum: Personal Finance (Not Investing)
Topic: Re-characterization of Roth contribution "opportunity" issue
Replies: 21
Views: 1346

Re: Re-characterization of Roth contribution "opportunity" issue

Celia wrote: Hushpuppy, This does not work since the additions and withdrawals done between the date of conversion and date of recharacterization have to be taken into account. There will not be enough left in the account to do the full conversion and the OP would have to pay taxes on the part that ...
by hushpuppy
Fri May 19, 2017 11:44 pm
Forum: Personal Finance (Not Investing)
Topic: Re-characterization of Roth contribution "opportunity" issue
Replies: 21
Views: 1346

Re: Re-characterization of Roth contribution "opportunity" issue

Mystified, because you have not yet re-characterized, I am wondering if you could transfer the Roth assets you do not want to re-characterize to a different custodian and then re-characterize just the portion of the money market fund that you desire. (Effectively isolating Roth assets, before re-cha...
by hushpuppy
Fri May 19, 2017 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Re-characterization of Roth contribution "opportunity" issue
Replies: 21
Views: 1346

Re: Re-characterization of Roth contribution "opportunity" issue

mystified, I edited link see previous post. Sorry about that. :oops:

Regards,

hushpuppy
by hushpuppy
Fri May 19, 2017 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Re-characterization of Roth contribution "opportunity" issue
Replies: 21
Views: 1346

Re: Re-characterization of Roth contribution "opportunity" issue

Take a look at the linked article that explains what has happened. (Especially examples 2A & 2B) This is a terrible "gotcha" that I wish investment company representatives knew enough to warn about. Thanks to several bogleheads, I was forewarned. Edited link. If it doesn't work please ...
by hushpuppy
Fri May 19, 2017 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 108
Views: 12725

Re: My dad is taking Social Security at 62, why would anyone not?

dodecahedron wrote: BLS statistics show that this has indeed been true over the past few decades, but less so recently. Future trends are anyone's guess. https://www.bls.gov/opub/ted/2012/ted_20120302.htm More discussion here: http://crr.bc.edu/wp-content/uploads/2015/10/IB_15-18.pdf Thanks for the ...
by hushpuppy
Fri May 19, 2017 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 108
Views: 12725

Re: My dad is taking Social Security at 62, why would anyone not?

David Jay wrote: SS COLA is based on CPI-W which overstates cost of living for retirees (over the long term) by, perhaps, 40 or 50 basis points. So SS beneficiaries actually come out ahead in periods of high inflation. This seems an unusual thing to state/believe. As medical costs are much more pred...
by hushpuppy
Wed May 17, 2017 11:48 am
Forum: Investing - Theory, News & General
Topic: Best argument you've heard against passive/for active?
Replies: 49
Views: 3952

Re: Best argument you've heard against passive/for active?

IlliniDave wrote: I think active funds with the following two characteristics can make good investments: -Low fees -Low turnover You could call the strategy long-term stock picking maybe. As both of those characteristics decrease the fund approaches an index fund with a custom, in-house, index defi...
by hushpuppy
Thu May 11, 2017 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Income Dividend Growth Fund
Replies: 8
Views: 1551

Re: Vanguard Income Dividend Growth Fund

DrKMP wrote: Some time back I invested in Vanguard's Dividend Income Growth Fund (VDIGX) but now don't have a good rationale for why I did it. I am not counting on dividends for my income and they don't help my tax efficiency, so should I sell this fund and invest in something else? Generally speaki...
by hushpuppy
Thu May 11, 2017 3:09 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Income Dividend Growth Fund
Replies: 8
Views: 1551

Re: Vanguard Income Dividend Growth Fund

From JoMoney link: Number of stocks for Dividend Appreciation ETF 188; NASDAQ Dividend Achievers 180 I have a good deal of respect for bogleheads general aversion to active management. However, I would point out that Don Kilbride has deliberately picked approximately 50 (47 last report Edit/Correcti...
by hushpuppy
Thu May 11, 2017 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Income Dividend Growth Fund
Replies: 8
Views: 1551

Re: Vanguard Income Dividend Growth Fund

JoMoney wrote: I have no idea why you did it. With this particular fund, being an active one, but also one following a fairly simple 'style' that there are similar strategy low-cost index alternatives of, the only reason I can imagine choosing it is because you have some reason to believe the fund m...
by hushpuppy
Thu Apr 27, 2017 4:03 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 9636

Re: Vanguard has switched to brokerage only accounts

From upthread hushpuppy wrote: From "Splitting A Roth Conversion Into Multiple Accounts To Isolate Investments For Strategic Recharacterization” by Michael Kitces: Example 2a. Jeremy converted $50,000 of XYZ stock from his traditional IRA into his Roth IRA, adding it to an existing $200,000 Rot...
by hushpuppy
Wed Apr 26, 2017 4:27 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 9636

Re: Vanguard has switched to brokerage only accounts

Doc, you are a good man. (I know you post often and meaningfully.) I mean no disrespect to you or anyone else on this forum. I don't post often, but I thought my post was appropriate for this thread. I simply don't understand why Vanguard as an organization apparently feels no responsibility for inf...
by hushpuppy
Wed Apr 26, 2017 2:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 9636

Re: Vanguard has switched to brokerage only accounts

Doc wrote: In any case I don't think the distinction is brokerage account vs. mutual fund only account. Vanguard mutual fund accounts on the old mutual fund platform have unique account numbers for each mutual fund. Roth recharacterizations are no problem under the old platform. When accounts are &q...
by hushpuppy
Wed Apr 26, 2017 1:02 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 9636

Re: Vanguard has switched to brokerage only accounts

Doc wrote: The problem may be that Vanguard does not support Specific ID in tax advantaged accounts. It is not a consequence of mutual fund only or Vg brokerage. The posts I made are not related to Specific ID in any way. I am only referring to conversions to Roth followed by any recharacterization(...
by hushpuppy
Wed Apr 26, 2017 12:34 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 9636

Re: Vanguard has switched to brokerage only accounts

dpc wrote: I don't do backdoor Roths (see above) and anecdotally, it seems that those were an issue when the transition happened. dpc, just in case you are referring to my post quoting from the Kitces article, be aware that any conversion of any type followed by a recharacterization can result in p...
by hushpuppy
Wed Apr 26, 2017 12:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 9636

Re: Vanguard has switched to brokerage only accounts

by Carl53 » Tue Apr 25, 2017 8:22 pm For those that had multiple traditional and multiple Roths, have you had any difficulty maintaining your multiple accounts. My flagship rep advised against upgrading due to some problems relating to automatic combining of accounts that 'upgrading' initiated. He ...
by hushpuppy
Thu Mar 30, 2017 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Handling future healthcare expenses AFTER legal settlement?
Replies: 5
Views: 713

Re: Handling future healthcare expenses AFTER legal settlement?

I suspect that if something major were to happen to me, based on this language I will likely have to reimburse the health insurance at whatever rate they paid - not the "sticker price" from the hospital that (as has been implied) can be up to 10x what the actual payment is. The actual dif...
by hushpuppy
Tue Mar 21, 2017 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: Horrible 401K Fund Choices--Direct transfer to IRA questions
Replies: 7
Views: 461

Re: Horrible 401K Fund Choices--Direct transfer to IRA questions

https://thefinancebuff.com/in-service-withdrawal-the-law-and-the-plan-rules.html The above link describes possible In-service withdrawals, but is only applicable if the specific 401k plan SPD (Summary Plan Description) allows it. I was able to do a partial rollover today for my wife, who has not yet...
by hushpuppy
Tue Feb 07, 2017 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Acquaintance and Social Security Disability
Replies: 8
Views: 890

Re: Acquaintance and Social Security Disability

I am wondering if a moderator would consider moving this thread to the Personal Finance (Not Investing) forum. I am hoping some boglehead may have relevant or more specific guidance they can add.

Regards,

hushpuppy
by hushpuppy
Mon Feb 06, 2017 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Acquaintance and Social Security Disability
Replies: 8
Views: 890

Re: Acquaintance and Social Security Disability

My experience in 2011 was that a $6,000 maximum was charged by an attorney against my social security claim. Because the claim in the case you describe has already been approved, some caution might be in order in regards to engaging an attorney. In other words any money comes out of the claiming ind...
by hushpuppy
Tue Jan 10, 2017 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Widow Benefits
Replies: 11
Views: 1159

Re: Social Security Widow Benefits

hushpuppy wrote: However, due to the age given for MIL, I believe the Survivor’s FRA is 66 years and 2 months 2017-60 = 57 year of birth. Mr. Piper would you mind commenting on the difference between FRA & Survivor’s FRA. I believe it is relevant in OP's case. Survivors Planner: Social Security ...
by hushpuppy
Tue Jan 10, 2017 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Widow Benefits
Replies: 11
Views: 1159

Re: Social Security Widow Benefits

Wassibi, I agree with you and Thrifty1 that the advisor does not seem correct. I also agree with Thrifty1: If the first amount is bigger, apply for my own benefits at the earliest age- 62, and survivors benefits at 66. If the second amount is bigger, apply at earliest date for survivor's benefits, a...
by hushpuppy
Mon Jan 02, 2017 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

BigJohn wrote: I agree, no worries about capital gains, clearly not an issue. My reasons for wanting share transfer was the desire not to be out of the market in cash for several days. Obviously a big price move could either help or hurt depending on direction but I'd rather not take the chance so I...
by hushpuppy
Wed Dec 28, 2016 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

OP, hushpuppy, here: The previously up-thread mentioned phone appointment with Vanguard was just completed. Results include the creation of four new uniquely numbered empty Roth IRA accounts, all on the “upgraded” new platform. These Roth IRA accounts will be available for planned early January 2017...
by hushpuppy
Sun Dec 25, 2016 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

BigJohn wrote: hushpuppy, I'm surprised that your four recently opened Roth accounts only have one account number while I ended up with two. It sure would be nice to understand what caused these different results. If you get any insight into why the outcomes are different, I (and others) would certa...
by hushpuppy
Sun Dec 25, 2016 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: Help With Math & Savers Credit
Replies: 35
Views: 2433

Re: Help With Math & Savers Credit

kaneohe wrote: The numbers in a previous post in this thread (12/23) suggest that even if OP has a traditional 401K, OP would get the full benefit of that savers credit. The number is from tax software. Is that software incorrect? Your comments suggest that the Roth would be better. Or did I misunde...
by hushpuppy
Sun Dec 25, 2016 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Help With Math & Savers Credit
Replies: 35
Views: 2433

Re: Help With Math & Savers Credit

................................................................ Therefore, with the numbers you provided the use of a traditional 401k or IRA would be completely wasted and would result in potential future taxation that use of Roth type accounts would completely avoid. ...............................
by hushpuppy
Sun Dec 25, 2016 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

BigJohn wrote: I don't understand the background/history on this sub-account issue but at least in my experience this is not a worry. I've opened up two Roths this year in my name and have two separate account numbers. When I go on-line they show up as two separate accounts in the account summary no...
by hushpuppy
Sat Dec 24, 2016 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

Celia wrote: I have the feeling that your merged mutual funds into the same brokerage account was the result of upgrading. If I had upgraded your account for you, I would have made it simpler-looking for you too. There shouldn't be any reason you can't have multiple TIRAs and Roth brokerage accounts...
by hushpuppy
Sat Dec 24, 2016 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

FIREchief wrote: Utilizing a "leap frog" strategy instead of a "horse race" eliminates many of the concerns in this thread. Losing frogs can be recharacterized immediately and the race is done as of December 31 (or even November 30) of the current year. Thank you. The simplicity ...
by hushpuppy
Sat Dec 24, 2016 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Help With Math & Savers Credit
Replies: 35
Views: 2433

Re: Help With Math & Savers Credit

outdoorsygal wrote: He just informed me our income will increase since he is working for a friend. But we'll still be below the 37K, but just barely after doing the math. If you find you and your husband happen to make slightly more than $37,000 of taxable income, then it would make sense to contri...
by hushpuppy
Sat Dec 24, 2016 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

retiredjg wrote:
Whatever you decide to do, you know that people here will help out - if not you, make sure Ms. Hushpuppy knows how to find us.


Mrs. Hushpuppy is in the loop! Thanks, from her :mrgreen:

Regards,

hushpuppy
by hushpuppy
Sat Dec 24, 2016 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

BL wrote: As Celia mentioned the term "horse race" is probably only used by some Bogleheads and is not any kind of official term, AFAIK. So I would suggest you don't use it when you are talking with your brokerage. Just state what you wish to do. I used the term, as I related in my up-thre...
by hushpuppy
Sat Dec 24, 2016 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

retiredjg wrote: Speaking from the viewpoint of the potential survivor, having to deal with 3 re-characterizations and figuring out how to report that on my already complicated taxes….it would not be worth it to me to have a $55k Roth as opposed to a $51k Roth IRA. Especially since the market may ch...
by hushpuppy
Sat Dec 24, 2016 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

Celia wrote: HushPuppy, for some reason I have not seen your thread until now. There are several comments so far that I find disturbing and a possible mis-interpretion of something being attributed to me. First, to answer your original questions: 1. No. You should be able to do multiple conversions ...
by hushpuppy
Fri Dec 23, 2016 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

I think this is exactly why you should NOT participate in the horserace. You may very well be right. Note that Alan S. up-thread said: I think the more elaborate your conversion strategy is, the less likely you want to execute it at Vanguard. I intend to confirm Vanguard’s methodology to my satisfa...
by hushpuppy
Fri Dec 23, 2016 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

what I was told by my Flagship rep and a VG IRA specialist earlier this year was that as long as the account had non-recharacerized $$ available, additional conversions were possible. BigJohn, that would make sense. Very early in 2017, I will be contacting my Flagship rep to try to nail down confir...
by hushpuppy
Fri Dec 23, 2016 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Potential “Horse Race” Conversion
Replies: 52
Views: 3902

Re: Potential “Horse Race” Conversion

In delayed response to mnvalue above:

I just (a couple days ago) did a conversion from an old-style account to a newly-opened, new-style account.


Wow! Why am I not getting a warm fuzzy feeling about Vanguard’s consistency, regarding conversions? :?

Regards,

hushpuppy

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